the first quarter of 2009 wouldn't be fantastic for chip makers. Frankly, so did they
. But somehow or another, Intel managed to escape the vicious first three months of the year with quite a few dollars in its pocket, which -- in our opinion -- deserves applause in its own right given the circumstances.
The company's Q1 2009 filings show that it ended the quarter with a net profit of $647 million -- a figure that some outfits would do anything to reach during these tumultuous times. That said, it was still an 11% drop year-over-year, which some investors figured would be less drastic. Potentially more startling is the first quarter revenue drop, which was down an amazing $7.1 billion but only 13% compared to Q1 2008.
Paul Otellini, Intel
president and CEO, had this to say: "We believe PC sales bottomed out during the first quarter and that the industry is returning to normal seasonal patterns. Intel has adapted well to the current economic environment and we're benefiting from disciplined execution and agility. We're delivering a product portfolio that meets the needs of the changing market, spanning affordable computing to high-performance, energy-efficient computing.
If you'll recall, earlier this year Intel vowed to spend a staggering $7 billion on R&D
in the coming years, which proves that it's not about to be shaken by a few weak quarters in the industry. And, it deserves restating that Intel did manage to pull in a profit of over half a billion in just three months during a "slow economy." We're nowhere near Wall Street, but we find that to be pretty impressive from the outside looking in.